Tuesday, August 6th, 2019

Hong Kong International Airport turmoil as city-wide strike action spreads

Roughly 250 flights had to be canceled at Hong Kong International Airport this Monday as air traffic controllers en masse called in sick, joining the ranks of some 20 other business sectors that are protesting against an unpopular extradition bill. The bill has currently been shelved, but protesters are demanding its full withdrawal.

Though first signs of civil unrest appeared in March, it was not until June that the situation escalated with between 250,000 and one million demonstrators marching in protest of the bill on June 9. To minimize disruption, authorities chose to halve the number of take-offs per hour from 64 to 32 with over 500 flights scheduled for departure and approximately the same number of arrivals.

Local airlines have been the most heavily impacted with Cathay Pacific Airways and Cathay Dragon cancelling 140 flights to and from the city, while low-cost carrier HK Express axed ten services and Hong Kong Airlines cancelled 37 flights. A small percentage of foreign carriers cancelled services, while most long-haul flights were unaffected. A number of flights on Tuesday have also affected, with Cathay Pacific and Dragon cancelling 14 flights, HK Express delaying seven and Hong Kong Airlines scrapping seven. Many passengers were affected by the day’s events even before they got to the airport as protesters caused the Airport Express train service to be briefly suspended and in-town check-in facilities halted for the whole day.


DAE raises US$490 million of new liquidity

Dubai Aerospace Enterprise (DAE) has signed agreements to raise an additional US$490 million from 3 loan agreements. These agreements will have maturities of between 3 and 7 years.

Firoz Tarapore, Chief Executive Officer of DAE commented: “We continue to bolster our liquidity cushion to support our growth ambitions and opportunities. Our very strong balance sheet and solid operating model continue to attract lenders, new and existing, to DAE.”

Finnair flies first “Push for change” biofuel flights from San Francisco to Helsinki

Finnair will fly the first biofuel flights backed by its “Push for change” carbon decreasing initiative this week.

On both August 5th and 7th, the Finnair flight departing San Francisco Airport bound for Helsinki, Finland, will be flown with a biofuel mix of 12%, reducing the total C02 emissions for the two flights by approximately 32 tons.

Finnair’s biofuels partners in San Francisco are SkyNRG and World Energy; Shell Aviation has provided logistics and supply chain support for the project. The sustainable biofuel is produced from used cooking oil in California, which does not compete with food production or the agriculture industry.


Cargolux closes JOLCO financing arranged by DVB Bank and JP Lease

Cargolux Airlines International S.A. has closed a Japanese operating lease with call option (JOLCO) transaction for a Boeing 747-400ERF freighter aircraft.

The aircraft financing was arranged by DVB Bank SE, London Branch (DVB) and JP Lease Products & Services Co., Ltd (JP Lease).  DVB Bank provided the debt while the equity was arranged and underwritten by JP Lease.

Commercial Aircraft Airbus begins U.S. production of A220 aircraft

On August 5, Airbus has officially begun manufacturing the A220 in the U.S. The first team of A220 production workers began work at Airbus’ Mobile, Alabama-based production facility following their recent return from on-the-job training in Mirabel, Quebec, Canada, where the A220 programme and primary final assembly line are located.

Airbus had announced plans for the addition of A220 manufacturing in Mobile in October 2017. Construction on the main A220 flowline hangar and other support buildings for the new A220 began at the Mobile Aeroplex at Brookley at the beginning of this year. Airbus is producing the first few aircraft within some current A320 family buildings and newly-built support hangars. The first U.S.-made A220 – an A220-300 destined for Delta Air Lines – is scheduled for delivery in Q3 2020. By the middle of next decade, the facility will produce between 40 and 50 A220 aircraft per year.

Airbus is producing the first few aircraft within some current A320 family buildings and newly-built support hangars. The first U.S.-made A220 – an A220-300 destined for Delta Air Lines – is scheduled for delivery in Q3 2020. By the middle of next decade, the facility will produce between 40 and 50 A220 aircraft per year.


Astronics Corporation posts second quarter US$6.7 million net income, down 52%

Astronics Corporation has reported financial results for the second quarter ended June 29, 2019. Consolidated sales were down 9.4%, or US$19.5 million, including sales of the semiconductor business which was divested in the first quarter of 2019. Excluding the divestiture, adjusted consolidated sales were up 5.4%, or US$9.7 million, demonstrating growth in both the Aerospace and Test Systems segments.

Consolidated operating income decreased to US$10.6 million, or 5.6% of sales, compared with US$20.1 million, or 9.6% of sales in the prior-year period. The decline was primarily due to the divestiture of the semiconductor business. Adjusted consolidated income from operations excluding the operations of the divested semiconductor test business was US$8.5 million, or 4.6% of adjusted consolidated sales, compared with US$9.9 million, or 5.6% of adjusted consolidated sales, in the prior-year period. Net income was US$6.7 million compared with US$14.0 million in the prior year.

Impacts to operating income and margin included US$2.2 million in severance charges associated with restructuring initiatives, tariff expenses of US$2.3 million and operating losses of US$7.7 million related to the challenged Aerospace businesses. The US$7.7 million operating loss included a charge for inventory reserves of US$1.6 million. Operating losses related to challenged Aerospace businesses were US$8.1 million in the second quarter of 2018 and $10.7 million in the trailing first quarter of 2019.

Rolls-Royce continues to support EJ200 engine for RAF’s Typhoon fleet

Rolls-Royce has agreed a support contract with the UK Ministry of Defence for the maintenance and repair of the EJ200 engine.

The contract will see Rolls-Royce continue to provide support to the engines that power the Royal Air Force’s Typhoon aircraft and undertake a number of services including the maintenance, repair and overhaul of the engine and modules, provision of spares and aircraft ground equipment management.

Rolls-Royce and the UK MOD’s procurement arm, Defence Equipment and Support agreed the engine support contract (EJISS), which will deliver cost savings, as a follow-on to the 10 year Partnered Support Operational Phase arrangement.


Airstream arranges ATR42-320 aircraft sale

Aircraft remarketing specialist Airstream International Group has arranged the sale of an ATR42-320 on behalf of Regourd Aviation. The 1988 YOM aircraft, serial number 93, was sold to Zimex Aviation.

Airstream continues to enjoy a close relationship with Regourd Aviation having placed a number of ERJ-145’s with its subsidiary Amelia International and having sold the last ATR42-300 from Amelia’s fleet.

Lufthansa Technik intensifies training efforts - 246 young trainees join the company

The Lufthansa Technik Group is substantially increasing its commitment to training young people in Germany: 246 new traditional and dual-study trainees have joined the company - an increase of 55% over the previous year. And in view of the Group's positive economic development as well as the fact that many employees will soon reach retirement age, Lufthansa Technik has already decided to add a further 50 training slots in 2020. All told, Lufthansa Technik is now home to 616 young people on their way to professions in technical aircraft services, industrial engineering or aircraft logistics.

Given the increasingly narrow market, the company has already started the application process for 2020 in an effort to reach young people who are personally and professionally suitable for the training slots on offer.

In 2019, 135 young people will start their training in Hamburg, 78 in Frankfurt, 14 in Arnstadt, 14 in Alzey and five in Munich. Applicants were able to choose between 16 different professions and dual-study programs. Of the 246 new training and university slots, 186 are directly with Lufthansa Technik.

Lufthansa Technik AERO Alzey, the Lufthansa Technik Group company that focuses on overhauling smaller jet and propeller engines and is still growing strongly, has taken on 13 new aircraft mechanic trainees with a specialty in engine technology and one dual-study trainee with a specialty in mechanical engineering. The company is thus once again expanding its capacity, bringing the total to 39 slots.

Lufthansa Technik Logistik Services (LTLS) has 28 new trainees for the future-oriented profession of warehouse logistics specialist as well as two people training to become specialists for forwarding and logistics services. With a total of 83 training slots, Lufthansa Technik Logistik Services has the largest training program in the Lufthansa Technik Group aside from its parent company.

N3 Engine Overhaul Services, a 50:50 joint venture with Rolls-Royce in Arnstadt, Thuringia/Germany, is offering twelve aircraft mechanic trainees with a specialty in engine technology and two warehouse logistics specialists an exciting start to their careers. With a total of 46 trainees, N3 also plays an important role as a training company.

LEOS (Lufthansa Engineering and Operational Services) is giving two future mechatronics engineers the chance to join the leading provider of aircraft-related ground handling services.

The percentage of women among this year's new trainees stands at just over 12%, which is more than two percentage points above the previous year, but still too low. Lufthansa Technik will therefore persist in its efforts to attract women in particular to technical careers with a promising future.

GA Telesis

Ideagen launches new ‘modern, slick and visually rich’ version of Q-Pulse

Ideagen, the governance, risk and compliance GRC software provider, has launched a new and improved version of its Q-Pulse application to coincide with the 25th anniversary of the software.

The UK-based firm - which has a global presence with sites in the UK, Europe, US, SE Asia and the UAE - launched Q-Pulse version 7 today (Monday, August 5th), marking the latest evolution of the leading aviation safety management solution used by organisations such as KLM, Brussels Airlines, flybe and Thomas Cook.

As well as maintaining the software’s functionality for the aviation industry, such as safety reporting and policy and document control, the browser-based Q-Pulse 7 comes with powerful dashboard functionality for increased business intelligence and an intuitive user experience.

Ian Hepworth, Ideagen’s Chief Technology Officer, joined the company in May, 2018, to drive the development of Q-Pulse 7.

He said: “For any software product to remain at the top of the market for 25 years is an extraordinary achievement. To have one of our own reach that milestone is very special indeed and we are incredibly proud of the software and this latest iteration.

“With Q-Pulse 7, we believe we have produced a modern, slick and visually rich software product that has really taken the application to the next level. We have focussed on bringing data from all across the business to life through visually appealing and quickly consumable dashboards to ensure that users can access information that is important to them quickly and easily.

“Also, thanks to its web-based interface, the system can be accessed anytime, anywhere
– significantly extending its overall reach.”


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September 17, 2019 – Holiday Inn Kensington High Street, London, UK

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